Sale of house under bankruptcy
This is a discussion on Sale of house under bankruptcy within the Consumer Bankruptcy forum, part of the BANKRUPTCY & DEBT COLLECTIONS category; I'm currently a tenant in a house where the landlord has declared bankruptcy. The house is completely paid for, but ...
|POST NEW QUESTION|
||Thread Tools||Search this Thread||Rate Thread||Display Modes|
|Dec 2nd, 2010, 09:05 AM||#1|
Sale of house under bankruptcy
I'm currently a tenant in a house where the landlord has declared bankruptcy. The house is completely paid for, but risked a foreclosure due to unpaid taxes. He offered the house if we paid the back taxes and continued to pay rent for a time afterward on a rent-to-own arrangement, just until the bankruptcy clears. He claims he cannot transfer ownership until it does. Should I be worried about a shady deal?
|Dec 2nd, 2010, 01:24 PM||#2|
Re: Sale of house under bankruptcy
Is the landlord a corporation or a private individual? If it is an individual and he/she filed chapter 7 the unit will likely be sold to satisfy the unsecured creditors. If you have paid the taxes, you will be out of luck. Further, if after the closing of the bankruptcy the LL still has the house and you would like to proceed with this arrangement, there are several factors to consider.
First, if you do pay the back taxes, make sure the payment is made directly to the relevant government entity. Do not give the LL the money and assume he will pay the back taxes. If you do this and the LL doesn't pay the taxes, a tax lien will be placed on the house and a judicial sale will follow. To be sure, you would have a cause of action against the LL, but considering he is already filing for bankruptcy, your prospects of getting money from him are slim.
Second, the statute of frauds requires contracts for the sale of land to be in writing. Thus, you would need to put all the terms in writing. If this is not done, the LL could claim that no such deal was made. Through litigation you would likely win by showing that you paid the back taxes, but it would cost money.
In short, the deal seems very shady and I would be very wary of entering into it*
Best of Luck
*not intended to be legal advice
|Bookmark & Share|
This thread has 1 reply and has been viewed 545 times
|Thread Tools||Search this Thread|
|Display Modes||Rate This Thread|
|Thread||Thread Starter||Forum||Replies||Last Post|
|Chapter 7 Bankruptcy -- we listed our mortgage on our house in the bankruptcy||Unregistered||Consumer Bankruptcy||2||May 14th, 2011 07:23 AM|
|Will a short sale/foreclosure/ bankruptcy affect our chances of approval?||Unregistered||Family-Sponsored Visas||3||Mar 11th, 2010 08:41 PM|
|Short sale troubles: My wife and I made an offer on a short sale house.||Unregistered||Buying & Selling Property||0||Jan 26th, 2010 04:47 PM|
|Contract Sale of Property -- I am buying a house on a contract sale.||ju_ju_bean5858||Other Real Estate Law Matters||1||Mar 13th, 2008 12:22 PM|
|Contract sale of property/ Buying a house on a contract sale||Unregistered||Other Real Estate Law Matters||2||Mar 11th, 2008 12:19 PM|